US President Donald Trump announced a 25% tariff on Indian goods starting August 1 on Wednesday. He said India would also face a penalty for its close defence and energy ties with Russia. The move comes as India continues to buy oil and military equipment from Moscow, despite global calls to isolate Russia over the war in Ukraine.

Harsh Words Despite Calling India a "Friend"

In a post on Truth Social, Trump said, "Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country."

He criticised India’s trade practices, saying the country imposes some of the world’s highest tariffs and tough trade restrictions. He added, “Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of energy, along with China, at a time when everyone wants Russia to stop the killing in Ukraine — all things not good!”

Penalty for "Unfair" Trade and Russia Support

Trump claimed that the 25% tariff is just one part of the penalty. He blamed India for "unfair" trade policies and said the country’s ongoing support for Russia made matters worse.

This announcement puts more pressure on India, which has so far maintained a neutral stance on the Ukraine conflict. Despite Western calls to cut ties with Russia, India continues to buy Russian oil and weapons, calling these deals part of its national interest.

Trade Deal Still Not Final

Although both countries had announced plans for a trade deal during Prime Minister Narendra Modi's visit to the US, no agreement has been signed yet.

So far, officials from both sides have held five rounds of talks. The sixth round is expected later in August when a US delegation visits India. However, no breakthrough has been made so far.

Tariffs May Be Temporary

According to Reuters, Indian officials believe the new tariffs may not last long. They see them as part of a negotiation tactic, with hopes of a full trade agreement by the fall.

Key Disagreements Remain

Trump has repeatedly asked India to open its markets to US goods. But India has stood firm, especially on protecting its agriculture and dairy sectors. These remain major sticking points in trade talks.

While the two countries aim to deepen economic ties, differences on key issues continue to delay progress.